AI Creates New Liability Risks in Insurance Litigation, Insurers Add Broader Exclusions
By
Annie Mayne
Summary
The article discusses how artificial intelligence (AI) is creating new and complex threats in insurance litigation. It highlights that AI systems, particularly "silent" or autonomous AI, can generate unexpected liabilities that traditional insurance policies may not adequately cover. Insurers are responding by adding broader exclusions to standard policies to preempt these emerging risks. The piece features insights from legal experts like Hinshaw & Culbertson partner Scott Seaman, who explains the challenges insurers face in underwriting AI-related risks and the evolving legal landscape surrounding AI accountability in claims and litigation.
Source
Key quotes
· 3 pulledInsurers are trying to preempt this new kind of risk by putting additional and broader exclusions into traditional policies.
The wave is coming — silent AI presents new threats that the insurance industry is only beginning to understand.
As AI systems become more autonomous, the question of who bears liability becomes increasingly complex and uncertain.
You might also wanna read
Insurance Companies Seek to Limit AI Liability Coverage as Risk of Large Claims Grows
Major insurance companies including AIG, Great American, and WR Berkley are seeking to limit their liability coverage for AI-related risks a
Physicians Face Liability Risks as AI Diagnostic Tools Enter Clinical Medicine
This article examines the trust gap between physicians and AI diagnostic tools in clinical medicine. While AI can analyze vast datasets and
Examining AI Liability: When Amazon's Kiro AI Agent Allegedly Caused AWS Outage
The article discusses a hypothetical incident where Amazon's AI coding agent 'Kiro' allegedly caused a major AWS outage by deleting a cloud
reading.sh·4mo agoAI Hallucinations as Legal Defense: The Accountability Gap in Corporate AI Use
The article examines the emerging legal and accountability challenge of AI hallucinations being used as a defense in corporate settings. It
OpenAI Withholds New Text-Generation Model Over Safety Concerns, Reigniting AI Ethics Debate
OpenAI has developed a new text-generation model capable of writing coherent, versatile prose but has decided not to release the full algori
The Practical Cybersecurity Risks of AI Implementation
The article argues that AI systems, particularly LLM-based ones, will compromise cybersecurity not through sci-fi scenarios of superintellig

Comments
Sign in to join the conversation.
No comments yet. Be the first.